German automaker Volkswagen expects a continued impact from the semiconductor shortage this year, although it expects to be able to ramp up production in the second half of the year, Chief Executive Herbert Diess said on Wednesday.
“The supply situation is improving, but even in 2022 we won’t be able to assemble all the cars we could sell. But we see opportunities for further increases in production, especially in the second half of the year,” Diess said in a speech.
Automakers around the world have been hit by a semiconductor shortage due to Covid-19 supply chain disruptions, as well as growing demand for semiconductors from consumer electronics companies.
Volkswagen said in early February that night work in Wolfsburg would be cut on some production lines because of a lack of chips. Diess said capacity adjustments would also be needed in the medium term.
Diess said chip supply is the only major challenge at the moment, with the top models of its premium brands already sold out for the entirety of 2022, while its truck business also has well-filled backlogs.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
